See, no matter what you wish to talk about, you end up at the old premise that the situation is Israel's fault, and that if we were back at the 1967 lines, then we will achieve utopia.
Well, there were 20 years worth of pre-1967 lines, where there was no advancement towards a "Palestinian State"; the PLO and pre-PLO organizations operating from the West Bank were not trying to get a state, because if they were, then they should've been fighting th Jordanians. An intersting pargraph in
Wikipedia says a lot:
Before 1967 there were no universities in the West Bank (except for the Hebrew University in Jerusalem - see below). There were a few lesser institutions of higher education; for example, An-Najah, which started as an elementary school in 1918 and became a community college in 1963. As the Jordanian government did not allow the establishment of such universities in the West Bank, Palestinians could obtain degrees only by traveling abroad to places such as Jordan, Lebanon, or Europe.
Not to be mean - but this problem ultimately does stem from Israel's existance; it didn't exist there before. Even as you liked to quote that Arab Jew exodus from their home lands, that a lot of the discrimination did not occur till the establishment of Israel.
HOWEVER - I , as you should be as well, am interested in a REAL peace. Both sides have committed wrongs, and the more I think the more I feel that Lemon Law is right when he said that ultimately an outsider will have to come in and biatch slap both sides (which I simply don't see happening). If both of us want real peace we have to realize what is necessary to gain that -- Israel at 1967 lines can be accepted by the majority of people and governments. Palestinians with a nation in which they themselves (and ONLY themselves) can control is what will be accepted. Even the hard line HAMAS hinted back in early Februrary that is Israel goes to 1967 lines them something can be hammered. It shows that the other side isn't demonic, but also still PRAGMATIC .
I know you're just going to jump up and say this is irrelevant, but I believe it is very much relevant. I agree that as of 1967 the residents of the West Bank ARE in limbo, but what we should ask if whether the "loss" of 1% of land was worth the advancements made after the area ended up under Israel's control, and prior to meddling by the PLO and other radical groups that didn't do much beisdes creating security issues that led to tough Israeli responses.
Even if we look at what Israel did or did not do to the land, or what the Palestinians did or did not do to the land it the answer should be clear - it is blantant land left, and you are simply looking for ways to sugar coat it. And remember- Israel's actions clearly show that they are not interested in the development of a real Palestinian economy, because so as long as it is in the shitter...they can falsely claim "look what we did to it - they didn't do anything"